Can I enhance annuity?

I am aged 60 and am a type 2 diabetic. I read that some annuity providers will give enhanced annuities to retirees with certain conditions. To whom can I write to get quotations for such annuities? My fund will be in the order of £170000 and I plan to retire this summer before my 61st birthday in October. RD, Gerrards Cross

Tom Hargreaves, Head of Pensions Research at Hargreaves Lansdown, replies: It has been estimated that as many as 40% of annuity purchasers could benefit from some form of enhancement, yet at present only around 10% actually take advantage of this opportunity to increase their income in retirement.

Whether you qualify for enhanced terms will depend on the severity of your diabetes, and whether you also suffer from any other medical conditions.

You can access diabetes specific rates on the annuity website at www.hargreaveslansdown.co.uk. This is the only annuity website in the UK that currently offers direct access to annuity rates for diabetics.

In addition, I recommend that you complete a medical questionnaire as this will increase your chances of being offered an enhanced rate.

Finally, given your medical circumstances, and the size of your fund, you might want to consider talking to an IFA to run through the full range of your options, before you go ahead and buy an annuity.